2017 Key Retirement Planning Numbers

Retirement Planning Key Numbers

Certain retirement plan and IRA limits
are indexed for inflation each year, but only a few of the limits eligible for a
cost-of-living adjustment (COLA) have increased for 2017. Some of the
key numbers for 2017 are listed below, with the corresponding limit for 2016.
(The source for these 2017 numbers is IRS Information Release IR-2016-141.)

1 Must aggregate employee deferrals to all 401(k),
403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b) contributions
are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation
reduced by elective deferrals (effectively a 20% maximum contribution).

2 Special catch-up limits may also apply to 403(b)
and 457(b) plan participants.

Retirement plan compensation limits

2016

2017

Maximum compensation per participant that can be used
to calculate tax-deductible employer contribution (qualified plans/SEPs)

$265,000

$270,000

Compensation threshold used to determine a highly
compensated employee

$120,000 (when 2016 is the look-back year)

$120,000 (when 2017 is the look-back year)

Compensation threshold used to determine a key
employee in a top-heavy plan

$1 for more-than-5% owners

$170,000 for officers

$150,000 for more-than-1% owners

$1 for more-than-5% owners

$175,000 for officers

$150,000 for more-than-1% owners

Compensation threshold used to determine a qualifying
employee under a SIMPLE plan

$5,000

$5,000

Compensation threshold used to determine a qualifying
employee under a SEP plan

$600

$600

Income phaseout range for determining deductibility of
traditional IRA contributions for taxpayers:

2016

2017

1. Covered by an employer-sponsored plan and filing as:

Single/Head of household

$61,000 – $71,000

$62,000 – $72,000

Married filing jointly

$98,000 – $118,000

$99,000 – $119,000

Married filing separately

$0 – $10,000

$0 – $10,000

2. Not covered by an employer-sponsored retirement
plan, but filing joint return with a spouse who is covered by a plan

$184,000 – $194,000

$186,000 – $196,000

Income phaseout range for determining ability to fund
a Roth IRA for taxpayers filing as:

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Affinity Wealth Advisors Inc., 8170 Corporate Park Drive, Suite 210, Cincinnati, Ohio 45242. Phone: (513) 489-7900. Investment Advisor Representative: Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Registered Representative: Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC (www.finra.org,www.sipc.org). Cambridge and Affinity Wealth Advisors are not affiliated. We are securities-registered in the following states and jurisdictions: Arkansas, Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, and Washington District of Columbia. This website is only intended for residents of these states, and is not intended as an offer to sell securities to residents of any other state. Links disclosure: Neither Affinity Wealth Advisors nor Cambridge Investment Research are responsible for the content or technology of third-party websites that are linked to or from this website. Certified Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete initial and ongoing certification requirements.